12th Sep 2013 10:08
LONDON (Alliance News) - The main London stock indices opened tentatively on Thursday before trading downward as investors reacted to evidence being given by Bank of England Governor Mark Carney to House Treasury Committee.
The pound rose as Carney acknowledged that the market is factoring in a fall in unemployment faster than anticipated, which could lead to interest rate hikes sooner than expected.
By mid morning, the FTSE 100 is down 0.3%, the FTSE 250 is down 0.7%, and the Aim All-Share is down 0.2%.
At the equity level, WM Morrison Supermarkets leads the blue-chip index after reporting mixed interims, up 3.4%. Jefferies has reiterated its Buy rating on the stock, with a price target of 310 pence, suggesting there is not much further for the price to go in the short term, having already gained about 17% in the last three months.
AMEC is one of the biggest gainers on the FTSE 100, up 2.5%, following the announcement that the company does not intend to make an offer for Kentz Corporation. Whilst driving AMEC shares up, the news has resulted in a drop of 11% in Kentz's share price making the construction business one of the biggest losers on the FTSE 250.
Europen CPI data has provided few surprises as French figures reported an increase of 0.5% in August, up from a 0.3% decrease the month before, as expected. Italy saw an increase of 0.4% in August, up from 0.1% in July, fractionally ahead of the expected increase of 0.3%.
Following US President Barack Obama's decision to ask Congress to delay a vote on military action until the diplomatic options have been fully explored, gold prices have declined, sharply falling early Thursday to USD1,340.52 per ounce.
This afternoon sees jobless claims numbers from the US at 1230 BST. Following the release of the figures, thoughts are expected to turn back to the Federal Reserve and possible tapering of stimulus at the next FOMC meeting.
By James Kemp; [email protected]
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